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p-facility Huff location problem on networks

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  • Blanquero, Rafael
  • Carrizosa, Emilio
  • G.-Tóth, Boglárka
  • Nogales-Gómez, Amaya

Abstract

The p-facility Huff location problem aims at locating facilities on a competitive environment so as to maximize the market share. While it has been deeply studied in the field of continuous location, in this paper we study the p-facility Huff location problem on networks formulated as a Mixed Integer Nonlinear Programming problem that can be solved by a branch-and-bound algorithm. We propose two approaches for the initialization and division of subproblems, the first one based on the straightforward idea of enumerating every possible combination of p edges of the network as possible locations, and the second one defining sophisticated data structures that exploit the structure of the combinatorial and continuous part of the problem. Bounding rules are designed using DC (difference of convex) and Interval Analysis tools.

Suggested Citation

  • Blanquero, Rafael & Carrizosa, Emilio & G.-Tóth, Boglárka & Nogales-Gómez, Amaya, 2016. "p-facility Huff location problem on networks," European Journal of Operational Research, Elsevier, vol. 255(1), pages 34-42.
    • Handle: RePEc:eee:ejores:v:255:y:2016:i:1:p:34-42
    DOI: 10.1016/j.ejor.2016.04.039
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    References listed on IDEAS

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    1. David L. Huff, 1966. "A Programmed Solution for Approximating an Optimum Retail Location," Land Economics, University of Wisconsin Press, vol. 42(3), pages 293-303.
    2. Drezner, Tammy & Drezner, Zvi & Salhi, Said, 2002. "Solving the multiple competitive facilities location problem," European Journal of Operational Research, Elsevier, vol. 142(1), pages 138-151, October.
    3. Tammy Drezner & Zvi Drezner, 2004. "Finding the optimal solution to the Huff based competitive location model," Computational Management Science, Springer, vol. 1(2), pages 193-208, July.
    4. Plastria, Frank, 2001. "Static competitive facility location: An overview of optimisation approaches," European Journal of Operational Research, Elsevier, vol. 129(3), pages 461-470, March.
    5. Rafael Blanquero & Emilio Carrizosa & Amaya Nogales-Gómez & Frank Plastria, 2014. "Single-facility huff location problems on networks," Annals of Operations Research, Springer, vol. 222(1), pages 175-195, November.
    6. Rafael Blanquero & Emilio Carrizosa, 2013. "Solving the median problem with continuous demand on a network," Computational Optimization and Applications, Springer, vol. 56(3), pages 723-734, December.
    7. H. A. Eiselt & Gilbert Laporte & Jacques-François Thisse, 1993. "Competitive Location Models: A Framework and Bibliography," Transportation Science, INFORMS, vol. 27(1), pages 44-54, February.
    8. Kei-ichi Okunuki & Atsuyuki Okabe, 2002. "Solving the Huff-Based Competitive Location Model on a Network with Link-Based Demand," Annals of Operations Research, Springer, vol. 111(1), pages 239-252, March.
    9. Fernandez, Jose & Pelegri'n, Blas & Plastria, Frank & Toth, Boglarka, 2007. "Solving a Huff-like competitive location and design model for profit maximization in the plane," European Journal of Operational Research, Elsevier, vol. 179(3), pages 1274-1287, June.
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